The militants opened fire on the group during a raid on their hideout near the Bahariya oasis in the Western Desert, the interior ministry said.
Security forces are understood to have gone into the desert following a tip-off about a possible hideout. Fifteen militants also died in the attack.
Egypt is currently fighting an Islamist insurgency in northern Sinai.
The Bahariya oasis where this attack took place, however, lies hundreds of kilometres south-west of the troubled region.
